Entrepreneurship And Innovation In Digital Era PDF

ENTREPRENEURSHIP AND Dr Albert Tomaszewski INNOVATION IN DIGITAL ERA University teacher since 2009 Director of Postgraduate Management Studies Actively supporting business:  Strategy consulting  Business plans  Training programs Experienced researcher Exited about entrepreneurship and techn...

ENTREPRENEURSHIP AND Dr Albert Tomaszewski INNOVATION IN DIGITAL ERA University teacher since 2009 Director of Postgraduate Management Studies Actively supporting business:  Strategy consulting  Business plans  Training programs Experienced researcher Exited about entrepreneurship and technology since I remeber Failed at least 2 good startup projects ORGANIZATION The course is a seminary class - active participation is highly encouraged  2 absences – no explanation needed  Skipping more than 5 classes – class failed  Being late = ½ of absence All files, powerpoint presentations, workshop forms etc. will be stored in our TEAMS My office hours – Fridays 9am on TEAMS Please book in advance via email – [email protected]  Exam – 50%  Single choice questions – 20 questions Group assignement – 25% CREDIT  Final presentation – 20%  Milestones on time – 5% Activity throughout the class and special tasks – 25% CLASSES PLAN 1. Entrepreneurship essence 9. Problems worth solving 2. Digital era and business 10. Planning and exacution 3. Personal development 11. Verifying business ideas 4. What’s so special about 12. Financing and legal issues startups? 13. Presentation workshop 5. Creativity workshop 14. Final presentations 6. An innovative startup idea 7. A study visit in an accelerator 8. Finding out more about potential customers WHO IS AN ENTREPRENEUR? WHAT IS SO SPECIAL ABOUT BEING ENTREPRENEUR? ENTREPRENEURS ACCORDING TO ECONOMISTS PEOPLE WITH NONFIXED INCOMES RICHARD CANTILLON (EARLY 1700S) A minority, which engages in uncertain ventures Forcast needs on the market and invest present resources hoping to profit in future MIDDLMEN BETWEEN SCIENCE AND WORKING PEOPLE J.B. SAY (EARLY 1800S) Entrepreneurs connect scientists with working people  Scientists create innovations, but usually don’t know how to commercialize them  Working people offer their work – they do not create innovation Being an entrepreneur is a profession  Acting on your own account and behalf  Using technologies and organising work to create products and services  Initating activites  Fulfilling needs of others  Organisting production and bearing the risks  Introducing changes under pressure of markets EXPLOITER OF THE WORKING CLASS K. MARX (MID 1800S) A main goal of entrepreneurs is to accumulate capital Capital gives great advantage over the working class Entrepreneurs are small in numbers but possess most of the capital Working class consists of poor masses, with no capital Capital is a source of power which is economically abused Entrepreneurs acquire an unfair share of the added value produced by working people on means of production possessed by entrepreneurs Entrepreneurs simply exploit working people CONTRACTOR OF THE WILL OF MARKETS A. MARSHALL (LATE 1800.) An entrepreneur is guided by fixed and variable costing Entrepreneurs produce as long as the selling price covers costs Prices of products and prices of factors of production are market driven - they are dictated by supply and demand An entrepreneur in a competitive market has no influence on prices - only reacts to their changes:  Changes the volume of production  Changes the production profile BEARING THE RISKS F. KNIGHT (EARLY 1900S) Entrepreneurs are people who engage in uncertain ventures They bear the risks, so the rest of the society doesn’t have to Entrepreneurs separate the public from risk CREATING DISRUPTIVE INNOVATION J. SCHUMPETER (MID 1900S) Entrepreneurs’ job is to create innovations Breakthrough innovations are a force of creative distruction on the markets  Old means of production are replaced by new technologies  Old industries are replaced by new ones Entrepreneurs are daring visionaries, who change the world SMART AND OBSERVANT I. KIRZNER (LATE 1900S) Present environments is dynamic and complex Nobody is able to gather and proces all necessary information about the environment Smart observations and gathering insights are sources of chances Entrepreneurs basing on their observations compare present costs of resources to their future estimated values An entrepreneurial activity is an arbitrage ENTREPRENEURIAL PROFIT ACCORDING TO THE ECONOMISTS R. Cantillon & J.B. Say – Profit is a reward for work which creats value K. Marx – Profit is a result of exploiting a weaker position of working force A. Marshall – In free market conditions profits are exeptional F. Knight – Profit is a fair reward for bearing the risks J. Schumpeter – Profit is a result of breakthrough innovation I. Kirzner – Profit is a result of observations which enable arbitrage  ENTREPRENEURSHIP AND Dr Albert Tomaszewski INNOVATION IN DIGITAL ERA CLASSES PLAN 1. Entrepreneurship essence 9. Problems worth solving 2. Digital era and business 10. Planning and exacution 3. Personal development 11. Verifying business ideas 4. What’s so special about 12. Financing and legal issues startups? 13. Presentation workshop 5. Creativity workshop 14. Final presentations 6. An innovative startup idea 7. A study visit in an accelerator 8. Finding out more about potential customers  Innovation Startups Entrepreneurship Digitalization POP-QUIZ – WHAT DOES THIS PERSON DO? POP-QUIZ – WHAT DOES … DO? Digital marketing specialist WHAT DOES A DIGITAL MARKETING SPECIALIST DO? WHAT DOES A UX/UI DESIGNER DO?  WHAT DOES A SOCIAL MEDIA MANAGER DO? WHAT DOES A CLOUD ARCHITECT DO? WHAT DOES A DATA SCIENTIST DO? WHAT DO ALL THESE PROFESSIONS HAVE IN COMMON? Together with:  App Devloper  Cybersecurity Analyst  Blockchain Developer  Influencer/Content Creator  DevOps Engineer  Digital Product Manager  3D Printing Specialist  … and many more… … and Startup Enterpreneur WHAT DOES IT MEAN FOR INNOVATION AND ENTREPRENEURSHIP? Remember me? DIGITAL ENVIRONMENT 1 zettabyte=1021 bytes WHERE DOES THIS DATA COME FROM? FOUNDATION OF DIGITAL TRANSFORMATION S OCIAL EXTRAS: M OBILE BLOCKCHAIN A NALYTICS AI ie. GEN AI 3D PRINTING C LOUD IT INTERNET of THINGS WHAT DOES IT MEAN FOR STARTUPS? Finally! DIGITAL ERA – BUSINESS IMPLICATIONS New Business Models  Digital-first companies, platform-based business models  Business models are scalable and capitalize on digital ecosystems Customer-Centric Models  Personalized services based on customer data and AI  More personalized relationships, improving customer loyalty and satisfaction Globalization and Market Reach  Breaking down geographic barriers, allowing even small businesses to enter global markets  E-commerce platforms, social media, and online marketing expand the reach far beyond local markets Agility and Flexibility  Responding more quickly to changes in the market  Cloud computing and software-as-a-service (SaaS) platforms make businesses more flexible and scalable DIGITAL ERA – IMPLICATION FOR INNOVATION Rapid Prototyping and Experimentation:  Cloud computing, AI and data analytics enable faster product development and testing.  Minimum viable products (MVPs) as a way for gathering customer feedback in real time. Automation and Efficiency:  Automation through AI, machine learning, and robotic process automation (RPA) which frees up resources for innovation  Automated systems can handle routine tasks, while human teams focus on creative problem-solving Data-Driven Innovation  Vast amounts of data, leading to data-driven decision making  More precision in identifying new opportunities Collaboration Tools:  Digital platforms and virtual collaboration tools make global collaboration accessible  Leveraging talent from anywhere in the world DIGITAL ERA – OPPORTUNITIES FOR STARTUPS Lower Barriers to Entry  Digital tools and cloud infrastructure reduce the capital expenditure needed to start a business Access to Global Talent  Remote work and digital collaboration platforms allow startups to tap into global talent pools without the need for expensive office spaces Competitive Advantage through Innovation  Startups can leverage cutting-edge technologies to innovate faster than traditional competitors  By being nimble, they can exploit niches or unmet needs in the market and disrupt existing industries Accelerated Growth  Using digital platforms helps to scale rapidly. Viral growth and network effects can create exponential growth opportunities. Investor Interest and Funding:  Digital startups are attractive to investors, especially with potential for scalability and disruptive innovation  Venture capitalists are keen on funding tech-driven startups that have clear paths to growth through digital channels. WHAT IS COMMON FOR A MUSIC TAPE, CD AND SPOTIFY?  ENTREPRENEURSHIP AND Dr Albert Tomaszewski INNOVATION IN DIGITAL ERA CLASSES PLAN 1. Entrepreneurship essence 9. Problems worth solving 2. Digital era and business 10. Planning and exacution 3. Personal development 11. Verifying business ideas 4. What’s so special about 12. Financing and legal issues startups? 13. Presentation workshop 5. Creativity workshop 14. Final presentations 6. An innovative startup idea 7. A study visit in an accelerator 8. Finding out more about potential customers WHAT ARE ENTREPRENEURS’ TRAITS?  Do you have any skills you feel very confident about? What does it take to truly MASTERING A master a skill? SKILL Do you have any skills you are convinced you are weak at? What does it take to go from below average to great? MASTERY VS SUCCESS Is craftmanship required to succeed? Why does a great skill rarely translate into success? How creating your own game could help you succeed?  (and what does it even mean?) THE IDEA OF A TALENT IS A MYTH Most of people share a misconception of what a talent is In most cases, success attributed to talent should be attributed to many years of practice and training The idea of talented and average is very missleading Abbility to learn is more important THE FIXED MINDSET A BELIEF THAT OUR TRAITS ARE FIXED – SO THEY CANNOT BE CHANGED People with a fixed mindset:  Believe that there are inborn limits to our achievements  Believe that people can’t change  Try to prove their quality all the time  Are afraid to appear dumb  Can’t handle criticism So they:  Avoid challenges  Give up easily  Ignore constructive criticism  Feel thretened by others and cannot cooperate effectivelly THE GROWTH MINDSET A BELIEF THAT OUR INTELLIGENCE AND QUALITIES CAN GROW – WE CAN IMPROVE THEM WITH TIME AND EXPERIENCE People with a growth mindset believe that:  an effort pays off  we don’t know our limits before we try them out  learning can be difficult but still is effective So they:  View challenges as opportunities to learn  Prioratize learing over approval of others  Focus on the process not the end result  Give themselves time to learn and are persistent  Embrace failures as a means to learn  Value constructive criticism  Are inspired by others’ success ENTREPRENEURSHIP IS ABOUT TAKING ACTION Initiative  Vision + sense of agency Taming risk Being effective in:  Communication (ie. selling)  Cooperation  Organizing  Decision making An entrepreneurial person has a sense of agency DETERMINISM The curse of determinism - justifying passivity by excuses of:  „born defected” – genetic determinism  „this is part of my personality” – psychological determinism  „my background made me this way” – environmental determinism These opinions by themselves are nothing wrong. There is more than a grain of truth in all of them. The problem starts when we treat them as an excuse for our idleness. BEING PROACTIVE Believing that: disregarding all limitations, we can shape our own reactions to things happening around us we can affect the course of events BEING REACTIVE Passively participate in events They are convinced that they can influence nothing A self-fulfilling prophecy of inaction:  You believe you have no impact, so you don’t act and as a result you don’t have any impact BEHAVIORISM ASSUPTIONS By systematically reinforcing Changing personality is desirable traits, such as Personality is a set of habits possible through changing greater self-confidence, acquired through learning patterns of behavior and perseverance, or processes responses. assertiveness, one can gradually transform their personality traits.  ACTION (THE WAY WE SEE IT) Problem Behavior Solution  ACTION (THE WAY IT IS) Trigger Craving Routine Reward THE POWER OF HABITS They arise whether we want it or not They shape our We learn them from our parents Ways of thinking We train them in schools Personal life They creep into our lives: Professional life  Out of comfort, out of fatigue, out of stress, because we can't do it any other way, etc. Ways of working in the fields of:  Communication, planning, organizing, creativity, We rarely design them ourselves networking, relationship building, and much more 19 NON-ENTREPRENEURIAL HABITS Complaining Acting "spontaneously" Messiness Procrastination Workaholism Wastefullness 20 ENTREPRENEURIAL HABITS Proactive thinking Setting and revising goals Planning and organizing time Open and to-the-point communication Determination 21 TOOLS TO IMPLEMENT CHANGE PLAN DAILY LOG REDESIGNING YOUR REVISION WITH A ENVIRONMENT FRIEND 22  ENTREPRENEURSHIP AND Dr Albert Tomaszewski INNOVATION IN DIGITAL ERA CLASSES PLAN 1. Entrepreneurship essence 9. Problems worth solving 2. Digital era and business 10. Planning and exacution 3. Personal development 11. Verifying business ideas 4. What’s so special about 12. Financing and legal issues startups? 13. Presentation workshop 5. Creativity workshop 14. Final presentations 6. An innovative startup idea 7. A study visit in an accelerator 8. Finding out more about potential customers DIGITAL ERA – BUSINESS IMPLICATIONS New Business Models  Digital-first companies, platform-based business models  Business models are scalable and capitalize on digital ecosystems Customer-Centric Models  Personalized services based on customer data and AI  More personalized relationships, improving customer loyalty and satisfaction Globalization and Market Reach  Breaking down geographic barriers, allowing even small businesses to enter global markets  E-commerce platforms, social media, and online marketing expand the reach far beyond local markets Agility and Flexibility  Responding more quickly to changes in the market  Cloud computing and software-as-a-service (SaaS) platforms make businesses more flexible and scalable DIGITAL ERA – IMPLICATION FOR INNOVATION Rapid Prototyping and Experimentation:  Cloud computing, AI and data analytics enable faster product development and testing.  Minimum viable products (MVPs) as a way for gathering customer feedback in real time. Automation and Efficiency:  Automation through AI, machine learning, and robotic process automation (RPA) which frees up resources for innovation  Automated systems can handle routine tasks, while human teams focus on creative problem-solving Data-Driven Innovation  Vast amounts of data, leading to data-driven decision making  More precision in identifying new opportunities Collaboration Tools:  Digital platforms and virtual collaboration tools make global collaboration accessible  Leveraging talent from anywhere in the world DIGITAL ERA – OPPORTUNITIES FOR STARTUPS Lower Barriers to Entry  Digital tools and cloud infrastructure reduce the capital expenditure needed to start a business Access to Global Talent  Remote work and digital collaboration platforms allow startups to tap into global talent pools without the need for expensive office spaces Competitive Advantage through Innovation  Startups can leverage cutting-edge technologies to innovate faster than traditional competitors  By being nimble, they can exploit niches or unmet needs in the market and disrupt existing industries Accelerated Growth  Using digital platforms helps to scale rapidly. Viral growth and network effects can create exponential growth opportunities. Investor Interest and Funding:  Digital startups are attractive to investors, especially with potential for scalability and disruptive innovation  Venture capitalists are keen on funding tech-driven startups that have clear paths to growth through digital channels. WHAT IS COMMON FOR MUSIC TAPES, CDS AND SPOTIFY? WHY SOME OF THE MUSIC FORMATS ARE NOT POPULAR TODAY? What are the factors behind the disruption in the music industry? Customer behavior Technology Business models DIGITAL ENVIRONMENT 1 zettabyte=1021 bytes SPOTIFY REVENUES STARTUP EXAMPLES?  ARE THESE GOOD IDEAS FOR STARTUPS? Ball pit place Flower shop UX consulting agency  WHAT IS A STARTUP? WHAT IS SO SPECIAL ABOUT STARTUPS? NOT A STARTUP NOT all organizations in early stages of development are startups A startup is NOT a smaller version of incumbent companies Goals of startups are NOT to:  Code  Build products  Earn money STARTUP = INNOVATION +AMBITION https://www.startupcommons.org/what-is-a-startup.html A QUESTION OF SCALING Digital goods via Internet Platforms for services Tangible products via Internet Tangible products in physical distribution channels Chains of stardardized services Services difficult to standardize  ARE THESE GOOD IDEAS FOR STARTUPS? Which of the ideas is the easiest to scale? Ball pit place What does scaling depends on? Flower shop UX consulting agency TASK Form groups of 3-4 people Discuss your startup examples – which of them fit the criteria for startups?